Who You Gonna Believe?

Suppose you had spent the last five years actually believing what you read from the usual suspects — the WSJ opinion pages, National Review, right-wing economists, etc.. Here’s what would have happened: In 2006 you would have believed that there was no housing bubble. In 2007 you would have believed that the troubles of subprime… Continue reading Who You Gonna Believe?

America Goes Dark

Meanwhile, a country that once amazed the world with its visionary investments in transportation, from the Erie Canal to the Interstate Highway System, is now in the process of unpaving itself: in a number of states, local governments are breaking up roads they can no longer afford to maintain, and returning them to gravel. …… Continue reading America Goes Dark

The political genius of supply-side economics | Martin Wolf’s Exchange | FT.com

To understand modern Republican thinking on fiscal policy, we need to go back to perhaps the most politically brilliant (albeit economically unconvincing) idea in the history of fiscal policy: “supply-side economics”. Supply-side economics liberated conservatives from any need to insist on fiscal rectitude and balanced budgets. Supply-side economics said that one could cut taxes and… Continue reading The political genius of supply-side economics | Martin Wolf’s Exchange | FT.com

Myths of Austerity

This conventional wisdom isn’t based on either evidence or careful analysis. Instead, it rests on what we might charitably call sheer speculation, and less charitably call figments of the policy elite’s imagination — specifically, on belief in what I’ve come to think of as the invisible bond vigilante and the confidence fairy. Bond vigilantes are… Continue reading Myths of Austerity

GOPers Vote For TARP Bailout Continuation, Against Bank Bailout Fund

in a scramble to save the bill in the wake of Sen. Scott Brown’s (R-MA) objections to the conference report, Democrats worked with moderate Republicans to figure out a new way to pay for Wall Street reform. What they came up with was pretty simple: end the TARP legislation (i.e., the much-maligned bank bailout) early.… Continue reading GOPers Vote For TARP Bailout Continuation, Against Bank Bailout Fund

Oy, Canada – Paul Krugman Blog

I do feel a sense of despair here. Ever since the crisis began, some of us have been trying to get across the point that you have to be very careful with your historical precedents, that things work very differently when you have a synchronized severe financial crisis, with interest rates near zero everywhere. And… Continue reading Oy, Canada – Paul Krugman Blog

Down The Memory Hole

Basically, US postwar economic history falls into two parts: an era of high taxes on the rich and extensive regulation, during which living standards experienced extraordinary growth; and an era of low taxes on the rich and deregulation, during which living standards for most Americans rose fitfully at best. From Down The Memory Hole –… Continue reading Down The Memory Hole

Soros on Gold

everyone at the lunch wanted to know what bubbles the billionaire might be investing in at the moment, given his theory. Soros dodged the question when I asked him but subsequently noted, “The ultimate asset bubble is gold.” I’m not sure if he meant that gold has been a bubble since the beginning of recorded… Continue reading Soros on Gold